ECB Governing Council member Olli Rehn said, “some recent indicators, especially from the service sector, have been somewhat disappointing, which amplifies the downside risk to the economic recovery.” He added. “The shape of the recovery in my view could be best described as a truncated square root.”

Rehn also noted Fed’s change to average inflation targeting. He said, “while price level targeting as suggested by (Former Fed Chair) Ben Bernanke or average inflation targeting is open to criticism from the point of view of communication, in this context is nevertheless worth exploring in depth.”

He’s preferring a single-point inflation target rather than “below but close to 2%”. “This would also imply that we would accept inflation overshooting the point target or undershooting the point target for a period of time, as long as we’re on path to converging to our medium term, symmetric price stability target.”

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